AMSTERDAM, February 13, 2017 /PRNewswire/ --
The Dutch bilateral development bank FMO today committed USD 30 million in the senior capital tranche of the Amsterdam based financial markets development company Frontclear. The investment represents a significant increase in the risk capital of Frontclear and allows Frontclear to extend its efforts to support the development of more inclusive and more liquid interbank markets in emerging and frontier economies. FMO's investment is further testimony to the value of Frontclear's development mandate.
"FMO is a leader in the global financial markets development agenda and the investment by FMO allows us to begin scaling our operations and deliver on our projected growth path of our financial guarantee portfolio," says Philip Buyskes, CEO of Frontclear. "We are thus very pleased to welcome FMO to Frontclear and look forward to building a long term partnership in the areas of capital market development of emerging and frontier economies."
"The innovative proposition of Frontclear is stimulating capital markets development in the geographies we are active in. FMO is very pleased to be able to contribute to Frontclear's mission of supporting economic development globally by catalysing the establishment of more stable and inclusive financial markets in emerging and frontier markets," added Huib-Jan de Ruijter, Director Financial Institutions of FMO.
FMO (the Netherlands Development Finance Company) is the Dutch development bank. For 45 years, FMO has been investing in the private sector in developing countries. We believe in a world in 2050 where nine billion people can live well and within the boundaries of the planet. In pursuit of this vision, our mission is to empower entrepreneurs to build a better world. We specialize in sectors where we believe our contribution can have the highest long-term impact: financial institutions, energy and agribusiness. Alongside partners, we invest in the infrastructure, manufacturing and services sectors. With an investment portfolio of EUR 9.2 billion, FMO is one of the largest bilateral private sector development banks.
Frontclear is a financial markets development company focused on catalyzing stable and inclusive interbank markets in emerging and developing countries (EMDC). Frontclear facilitates access by local financial institutions to interbank markets through providing credit guarantees to cover a transacting institution's counterparty credit risk. This on the condition that local currency assets can be used for collateral management purposes. Frontclear is funded by European governments and development finance institutions including BMZ, DFID, FSDA, EBRD, Proparco and TCX. Frontclear's Basel III compliant guarantees specifically cover due payment of the Early Termination Amount under ISDA contracts and corresponding claims under GMRA. The guarantees are in turn counter-guaranteed by KfW, an AAA-development financial institution. The guarantees are complemented by a technical assistance programme (FTAP). FTAP supports targeted and planned interventions in bank and system development, which reduce the operational and country risks obstructing interbank trading.
For further information, please visit http://www.frontclear.com and http://www.fmo.nl.